Boom and bust

The Union Government's generous shower of goodies for the national telecom sector has been greeted with big applause by the industry. The four-year moratorium on all spectrum and AGR ( adjusted gross revenue) dues is indeed a timely lifeline to the beleaguered industry in the pandemic era that has virtually knocked the hell out of the entire gamut of the business sector. But the good news is accompanied by a rude reminder for another part of the telecom sector. To put it bluntly, the once-great MTNL (Mahanagar Telephone Nigam Ltd.) is dying a slow death. Nay, it is being strangulated ever so slowly and strategically by the powers that be. Or is it a case of what 'the Government giveth with one hand, it taketh away with the other hand?'

But first, let us sing the praises of the policy announced last midweek (September 15) by Telecom Minister Ashwini Vaishnaw with an array of new telecom incentives. Spectrum user charges are being rationalized. More importantly, spectrum can now be shared, not just surrendered if needed. It encourages investors to put money into customer services and new technology. To ease the burden of interest payment on the dues during the moratorium, the companies are being given the option of doing it through equity. Vodafone Idea and Bharti Airtel, for instance, could be big beneficiaries. Vodafone Idea owes the government around Re 50,000 crore while Bharti Airtel owes Re 26,000 crore, both big potential beneficiaries.

The other big opening for the sector comes with the liberalization of FDI (Foreign Direct Investment) rules. The new policy allows 100 per cent foreign investment through an automatic route. Until now, 100 per cent of FDI was allowed in the telecom sector but only 49 per cent was allowed through the automatic route. Earlier, investment above that limit required government approval. Now that restraint is done away with.

The new policy aims at opening the field to more players with consumers getting wider choices. It is also directed at countering the duopoly fears, the market being dominated currently by just two big players, namely Reliance Jio and Bharti Airtel.

All told the new measures are expected to pave the way for large investments in 5G technology and generate more jobs. The policy changes were hailed by the industry with Aditya Birla Group chairman Kumar Mangalam Birla calling them as 'pathbreaking reforms' that could unshackle the industry by tackling longstanding issues. Vodafone Group CEO Nick Read called it a 'constructive initiative' after the sector 'has struggled for many years.'

Now to the other half of the sector — the Mahanagar Telecom Nigam Ltd. saga. Somewhere around the beginning of this current year, the MTNL service in the Sarva Priya Vihar area of South Delhi and elsewhere began to suffer sharp deterioration. Telephone and internet services began to suffer badly. Visits to the area headquarters near the IIT flyover bridge (toward Yoosof Serai and AIIMS) for complaints began to be treated very unprofessionally. The staff response became increasingly casual. Complaints suffered long delays before being attended to. Worse, the staff don't pick up the phone to avoid answering calls. Payment (cash) of bills can be made only at far-flung locations like Nehru Place and Bhikaji Kama offices.

The trouble seems to have started with the sudden onrush of linemen and other staff being told to collect their pensions with several staff members being retired at the beginning of this year. No arrangements were made to replace the retiring staff, according to the grapevine. Linemen became ever so rare to find. Their numbers had fallen so sharply that service was left to chance and mercy. Even extra polite gestures towards the linemen failed to work. The truth is that that there are only the barest number of linemen left who can just about serve the office staff and their immediate associates.

Not just the neglect and abdication of service, the equipment at various sub-area locations is left unguarded without any protection from vandalism. In Sarva Priya Vihar, not far from the local shopping market, the doors of the telephone equipment box have been missing for several months now. Probably some scrap dealer has collected them!

Visits to the huge office complex and complaints are met with the standard response: yes, the complaint has been received and will be attended to soon. But as usual, nothing happens. The customer is left in the lurch. The Area Manager, ever so polite and once helpful, is no longer able to rectify the situation. He and his staff are helpless yet always promising to do the needful.

The most serious aspect of this sorry state of MTNL operation, or disfunction, is the widespread talk or allegation that the entire MTNL business is being rundown deliberately with a view to its eventual sell-off to a private business conglomerate at knockdown prices. Nearly three acres of prime land housing the complex seem to be up for grabs. Privatization of public assets at throwaway prices seems to be the name of the game in India today!

The writer is a freelance writer and author of 'India and Britannia' and other writings. Views expressed are personal